PRICE CONTROL

Evening Post, Issue 145, 22 December 1928, Page 5

PRICE CONTROL

AUSTRALIA'S TRIALS THE HIGH BUTTER STATE : CONSUMPTION EALLS New.Zealand made an attempt to control butter two years ago., As a result the London market collapsed ■'■..under the weight.of controlled sup-, plies. . : ; On these words a writer in the Mel- ; bourne^ "Argus" of ■ 15th -November warns Victorian dairy farmers, against renewed activity of tho eontrollists. He. adds: ... .' "'' . . ;." ' " Queensland- is beginning to find that the success of its butter board is more apparent than real. In tho last report of that, body the chairman (Mr. J. Purcell) directed.: attention to the .decline inj. the consumption of butter in the State. lii 1925-26 home consumption was 399,324 boxes, and despite control it had fallen, by 24,12.8 boxes in 1927----28, or to 375,106 boxes. .; ' , • He suggested that the people were becoming poorer, that the quality of ' the butter supplied to the cities was ■ not so good as formerly, and .that some other commodity was replacing! ". butter in the. market. . ' ; Underlying' these statements arc the facts that the quality of butter has deteriorated solely because of the system of control by which the samo price is realised by all factories irrespective of the quality of the product above the 92 grade. Consumption has decreased, > ( and margarine has been used more freely simply because the, prico of butter as fixed by the board has at all times boon much above prices ruling in other States. Until last week thp Queensland price was 2d a lb more than that ruling /in Victoria.'' OVER-BOARDED. As regards the proposal of the recent Royal Commission in Dairying that a new board of marketing control be set up, he comments: "Already the Australian dairying industry is paying heavily for the privilege of yielding the conduct of its affairs to various boards. Suggestions have been made recently that it might be possible ,to eliminate at least one of the three main bodies — the Australian Butter ' Stabilisation Committee, the Dairy Produce Export Board, or tho Australian Dairy Council. To establish another board with wide' ■powers in regard to marketing would involve adding another levy to,the list already paid by the dairy farmer. "Victorian dairy farmers in the last 12 months have received much attention from organisers from other States. These men have represented the advantage to bo gaiued by so-called 'orderly marketing.' Eepresentatives from New South Wales and Queensland hero a year .ago stated that marketing control as established in Queensland was about to be introduced in New South' Wales, and that it remained- only for Victoria to obtain a marketing Act to enable producers to control the important markets of the eastern States and thereby eliminate interstate competition. Since that time Now South Wales has voted on the question of a butter pool, and producers have rejected it. Unabashed, a representative of the Primary Producers' Union of Now South Wales is touring Victoria urging dairymen to vote for a butter marketing Act. ■ Although the recommendation of • tho Dairying Commission has only been tabled this week, a meeting was, convened in Gippsland, and in the notices sent out a week ago it was stated that 'Victorian dairy farmers would soon bo called upon.to record their votes on a butter marketing Act.' In this way an effort is being made by sectional interests to stampedo butter producers into supporting an Act which has not yet oven been framed! - WHAT OF THE PATEKSON PLAN? "The chief point to be borne in mind is that any form of marketing control is expected to sound tho knell of the Patorson plan. Prices are being maintained at a high level by the Paterson bounty plan, and the gains derived from it are apparent to all in the industry. The plan is' voluntary, and has tho support of ' all sections of the industry, ,but it has been stated definitely that no further support will be accorded to it i£ a compulsory marketing arrangement is enforced. It is difficult to see what could be gained by a butter pool or an 'equalisation' plan that cannot be gained by the,Patorson plan. Queensland is tho only Australian State, that has tried control so far. Its experience of decreased consumption and poorer quality cannot be considered to be encouraging."